I have to say I’m surprised at the depth of the decline in ZEW. Seems as though investors are very much in the camp that the strong surge in German growth in Q2 is unsustainable.
EUR/USD is a mess on the short-term charts. We look as though we have put in a second top in the 1.2910/20 area and have worked through support in the 1.2850 area. Bids are seen now on dips to the 1.2790/00 area.
US retail sales are next up for the market. Strong data should prompt the typical “risk on/risk off” response but expect EUR/USD to lag the commodity currencies if the data beats expectations.
